
You’ve just registered your Australian Business Number (ABN). You’re excited to start your journey, but what comes next?
Should you set up a business bank account right away?
How do you handle taxes?
These are common questions when you’re just getting started, and it’s perfectly normal to feel a bit lost at this stage.
Getting these basics right will help your business thrive from the start. Let’s walk through what you need to know.
Why Did You Get Your ABN?
Before moving forward, it’s worth considering why you registered for an ABN in the first place. Typically, people get an ABN for one of these reasons:
- Starting Your Own Business: You might be ready to launch your venture and need an ABN to operate legally
- Working as a Contractor: Like Uber or taxi drivers who need an ABN to work as independent contractors
- Employer Requirement: Your employer might have asked you to switch from being an employee to a contractor
Knowing your situation helps determine your next steps, particularly around tax obligations and business structure.
For instance, Uber and taxi drivers must register for GST regardless of their income level—something many don’t realise until later.
Setting Up Your Financial Foundation
Managing your finances is one of the first steps after getting your ABN.
Keep Personal and Business Finances Separate
Mixing personal and business money can quickly become a bookkeeping nightmare.
Separate accounts make tracking your expenses easier, as well as managing cash flow and handling taxes without stress. It’s also essential for claiming deductions and staying compliant with the ATO.
Plus, it gives you a clear view of how your business is performing.
Open Two Separate Bank Accounts
Here’s a smart tip from experience: set up not just one but two separate accounts.
Keep your main business account for day-to-day operations, and open another account, preferably with a different bank, for your tax money.
Having that tax account out of sight makes it easier to resist dipping into those funds when cash gets tight.
Paying Yourself
Setting up a consistent income is essential when transitioning from employment to running your own business or working independently.
Pay yourself a set amount weekly or fortnightly, just like a regular wage. This ensures you maintain personal financial stability while accurately tracking your business’s profitability.
To determine your regular pay, first consider your essential business expenses:
- A mobile phone.
- Internet if you’re using a laptop.
- Transport costs for business travel.
- Software subscriptions.
- Insurance.
Once you know your overhead costs, you can calculate how much income your business needs to cover expenses, taxes, and savings while leaving enough to pay yourself regularly. This approach builds sustainable financial habits and prepares you for quieter periods.
Managing Your Money and Tax Obligations
Let’s talk about tax.
Getting this right from day one will save you stress and money later.
Most new business owners don’t realise that when money hits their account, not all of it belongs to them.
You must register for GST for sole traders making over $75,000 annually.
Here’s something many people don’t know:
For every $1,000 that lands in your account, roughly $91 (one-eleventh) belongs to the tax office for GST.
That’s why having a separate tax account is so important. It helps you set aside this money before you’re tempted to spend it.
Let’s say you invoice a client for $2,200. Before planning how to spend it, remember that $200 (one-eleventh) is GST and needs to go straight into your tax account.
Setting aside GST as the money comes in ensures you’re prepared for tax time and won’t be caught off guard when your bill arrives.
Getting Your Bookkeeping Right

You might excel at your trade or service, but bookkeeping is a whole different story. Luckily, modern software can help simplify this aspect of your business.
Australia’s most popular accounting software are Xero, MYOB and QuickBooks, all offering free trials. Take advantage of these trials to find the best fit for your business.
Use Professional Support
Even with great software, getting help with the initial setup is very important. An accountant can:
- Set up your systems correctly from day one.
- Monitor your progress from time to time, making sure you’re staying on track.
- Help you understand financial reports.
If you look at your reports and think, ‘I don’t even know what this means,’ that’s when you need to contact your accountant or advisor and ask, ‘Am I doing okay?’
Understanding Business Realities
Starting a business isn’t as simple as walking away from your job, thinking you could do better.
It takes more work, more planning and more dedication than most people expect.
When you transition from being an employee to working for yourself, there’s no guarantee of regular income unless you work hard to generate consistent sales.
You need to have some money behind you when you start—enough to give yourself time to build up your client base and generate steady sales.
Unlike employment, where someone else worries about the business’s success, everything stops with you when you’re the owner.
Common Challenges to Watch For
Financial management trips up many new business owners.
They see money in their account and assume it’s all available to spend. Without proper budgeting and planning, tax bills can catch you off guard.
Remember that one-eleventh rule for GST. Treat that portion of your income as untouchable.
Another common challenge?
Not having enough money set aside for slower periods.
Every business has its ups and downs. The trick is preparing for those downs while the money’s flowing.
Set aside some cash during good months. You’ll sleep better knowing you can weather the quiet patches.
Conclusion
Starting with an Australian Business Number is just your first step.
Running a business takes more dedication than most people expect, and you’ll face all sorts of challenges as the owner. But with proper planning, smart financial management and the right support, you can build a business you’ll be proud of.
Need help getting your business finances sorted?
We can guide you through these early steps.
Book a consultation today, and let’s ensure your business is set up for success from day one.